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A new perspective on Kesten's school choice with consent idea

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  • Tang, Qianfeng
  • Yu, Jingsheng

Abstract

We revisit the school choice problem with consent proposed by Kesten [12], which seeks to improve the efficiency of the student-optimal deferred acceptance algorithm (DA) by obtaining students' consent to give up their priorities. We observe that for students to consent, we should use their consent only when their assignments are Pareto unimprovable. Inspired by this perspective, we propose a new algorithm which iteratively reruns DA after removing students who have been matched with underdemanded schools, together with their assignments. While this algorithm is outcome equivalent to Kesten's EADAM, it is more accessible to practitioners due to its computational simplicity and transparency on consenting incentives. We also adapt this algorithm for school choice problems with weak priorities to simplify the stable improvement cycles algorithm proposed by Erdil and Ergin [8].

Suggested Citation

  • Tang, Qianfeng & Yu, Jingsheng, 2014. "A new perspective on Kesten's school choice with consent idea," Journal of Economic Theory, Elsevier, vol. 154(C), pages 543-561.
    • Handle: RePEc:eee:jetheo:v:154:y:2014:i:c:p:543-561
    DOI: 10.1016/j.jet.2014.10.002
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    References listed on IDEAS

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    1. Atila Abdulkadiroglu & Parag A. Pathak & Alvin E. Roth, 2009. "Strategy-proofness versus Efficiency in Matching with Indifferences: Redesigning the New York City High School Match," NBER Working Papers 14864, National Bureau of Economic Research, Inc.
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    4. Atila Abdulkadiroglu & Parag A. Pathak & Alvin E. Roth, 2009. "Strategy-Proofness versus Efficiency in Matching with Indifferences: Redesigning the NYC High School Match," American Economic Review, American Economic Association, vol. 99(5), pages 1954-1978, December.
    5. Kesten, Onur, 2006. "On two competing mechanisms for priority-based allocation problems," Journal of Economic Theory, Elsevier, vol. 127(1), pages 155-171, March.
    6. Aytek Erdil, 2013. "Strategy-Proof Stochastic Assignment," Cambridge Working Papers in Economics 1333, Faculty of Economics, University of Cambridge.
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    8. Aytek Erdil & Haluk Ergin, 2008. "What's the Matter with Tie-Breaking? Improving Efficiency in School Choice," American Economic Review, American Economic Association, vol. 98(3), pages 669-689, June.
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    More about this item

    Keywords

    School choice; Deferred acceptance algorithm; Pareto efficiency; Matching;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • I20 - Health, Education, and Welfare - - Education - - - General

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